New York Attorney General (NYAG) Letitia James is issuing a warning to crypto companies, saying that she will pursue those who act in violation of the law.
In a post on the social media platform X, James says her sights are locked on erring digital asset firms.
“Crypto companies must play by the same rules as everyone else. We will go after those that don’t.”
The warning comes a little over a week after the NYAG reached a $2 billion settlement with embattled crypto firm Genesis. Besides the financial penalty, the settlement banned Genesis from operating in New York.
“The settlement, which required review and approval by a bankruptcy court due to Genesis’ previous bankruptcy declaration, will establish a victims fund to help defrauded investors, including at least 29,000 New Yorkers, who contributed more than $1.1 billion to Genesis through the Gemini Earn investment program.”
Genesis customer funds have been locked since November 2022 when the now-bankrupt crypto lender halted withdrawals due to liquidity problems caused by the collapse of crypto hedge fund Three Arrows Capital.
In October 2023, James sued Genesis, its former CEO Soichiro Moro and its parent firm the Digital Currency Group (DCG) over allegations that the firms tried to hide $1.1 billion in losses.
Reports that the NYAG was probing the Digital Currency Group over its links to the troubled crypto lender Genesis first emerged around August.
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